BOSSES at Coventry-based Severn Trent Water say they are ‘disappointed’ workers are balloting for strike action in a row over pay.

Managers at the company have also refuted claims by union leaders that 5,000 employees will be asked to vote on industrial action – claiming less than 700 workers are members of the GMB.

They have also defended the two per cent pay increase, pointing out workers are also entitled to a bonus scheme as well as free shares each year – worth hundreds of pounds.

We revealed yesterday union leaders’ claims that thousands of staff could be preparing to walk out on strike after a row erupted over the proposed pay increase, which they say is the lowest in the industry and well below inflation.

They also hit out at big bonuses for top bosses and criticised the company’s overall performance.

But a spokesman for Severn Trent said: “We are disappointed that the GMB union does not value the total reward package on offer, which we believe is very competitive in the current market.

“The two per cent pay increase on base pay is the same for all employees, including executives and managers.

"Over and above this, we have an annual ‘Reward for Performance’ bonus scheme, which will pay out in the region of £350 to £400 per person to eligible employees this year and we have also agreed to offer an additional 0.5 per cent on top.

“Plus, eligible employees also benefit from an allocation of free shares every year, which will amount to £309 per employee this year. An equivalent total reward package last year was worth over six per cent of base pay.

“We provide a good overall service and value for money for our customers, who pay the lowest average water and sewerage bills in England and Wales. At an average of £326, water and sewerage bills amount to around 89p per day.

"The last hosepipe ban in the Severn Trent region was back in 1996 and we have also announced record low levels of leakage, well ahead of regulatory targets. Additionally, we have pledged to invest a further £150 million this year to improve our infrastructure.”